The Income Tax (IT) department in Hyderabad is sitting on a huge pile of cash that it should have returned long ago to those whom the money legitimately belongs: the tax payers. But hiding behind technicalities the department has not bothered to return the money which runs into a whopping Rs 1000 crore.

That it has in its ‘suspense account’ a sum of Rs 1000 crore was admitted publicly by chief commissioner of income tax department A K Basu. The tax man, however, claimed that this money – which is the excess tax collected – has not been refunded as the details of tax payers (such as PAN card number, address etc), recorded with the department were found to be incorrect. “In most cases, the Permanent Account Number (PAN) card number is wrong or missing altogether. In certain cases the form is incompletely filled,” said Basu, speaking at a seminar on tax deduction organised by Assocham on Wednesday.

Though top officials of the IT department passed the buck to tax payers and blamed their ignorance for the creation of a huge wealth in the suspense account of the IT department, analysts wondered if the department was trying to hide its inefficiency in dispatching the refunds on time. Recently a refund scam – involving siphoning of tax refund money – had surfaced in the department and the hand of insiders was suspected in the matter. Analysts also said that the IT department could well be deliberately delaying the release of money from the suspense account as they could be earning a hefty sum as interest from the money now deposited in the bank. “If they have put in long-term fixed deposits at an interest rate of 10 per cent, the department can be making Rs 100 crore annually,” said a businessman who is waiting for his refund. “This talk of tax payers writing wrong PAN numbers is all balderdash,” he added.

However, the department’s Hyderabad office is not the only offender in this matter. According to senior officials, nationally the income tax department is sitting on a suspense account that runs into Rs 16,200 crore.

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Category : Income Tax (26311)
Type : News (13231)
Tags : Income Tax Refund (201)

0 responses to “Income Tax department fails to issue Income Tax Refund of Rs 1,000 crore to taxpayers”

  1. kamal says:

    actually we all are responsible for this mess as these fradulant lawyers ITOs and other involved in it are just pawns …

  2. Jai ho corruption says:

    Records relating to refunds of at least the same amount-in fact, many times more-are destroyed, missing! Many poor families have been impoverished over the years just pursuing the refund claims of their dead parents, brothers, sisters, grandfathers-and of course of themselves. The whole system based entirely on distrust/mistrust of taxpayers is rotten. The corrupt refund racketeers, CAs, ITPs, Advocates have been minting money and sharing with the inside perpetrators-while the exchequer and the tax paying public keeps suffering.
    Jai ho corruption!

  3. CA. Ashok Aggarwal says:

    TDS service providers are at fault for non mentioning of PAN of depositors of banks.

    Salaried class is at fault for not taking help of professionals while filing IT retunrs.

    ITD at fault for shortage of staff and other reasons at stated above in para.

  4. C.Jyoti says:

    This is an endemic problem, existing all over the country. There are thousands of comments available in the Taxguru itself about the malpractices going on unabated in this thoroughly corrupt department of bad elements. The staff do not care for their superiors as promotions are available easily, of course by paying money or “serving” the superior officers. Every one brings undisclosed money at the end of every day. Refunds are given by people-not by machines. If any tax payer writes to higher authorities, he/she is called, threatened and even damaged, their records destroyed/lost deliberately and superiors are forced to support as the subordinates blackmail. And so far as refund rackets involving bogus refund issue is concerned, it is a very lucrative and prospering business being run by ITPs/CAs/Advocates/Agents (masquerading as CAs) with the open support and patronage of the top most officers,. Many cases of CBI are pending also, but the accused are still “practicing” boldly. There can be no solution to this legalised corruption unless every refund is compulsorily issued with interest on delayed refund within 3 months from the date of receipt of returns. Verification can await. And all refunds must be issued by ECS to bank accounts of more than 5 years’ standing. The officer and staff and their bosses upto the levels of chief commissioners must be statutorily made punishable for failure in this regard. When they are enriching themselves through bribes, they should not mind sharing some of the bribe with the govt as fine or penalty let them pay in cash to avoid scrutiny.

  5. C.Jyoti says:

    This is an endemic problem, existing all over the country. There are thousands of comments available in the Taxguru itself about the malpractices going on unabated in this thoroughly corrupt department of bad elements. The staff do not care for their superiors as promotions are available easily, of course by paying money or “serving” the superior officers. Every one brings un disclosed money at the end of every day. Refunds are gtiven by people-not by machines. If any tax payer writes to higher authorities, he/she is called, threatened and even damaged, their records destroyed/lost deliberately and superiors are forced to support as the subordinates blackmail. And so far as refund rackets involving bogus refund issue is concerned, it is a very lucrative and prospering business being run by ITPs/CAs/Advocates/Agents (masquerading as CAs) with the open support and patronage of the top most officers,. Many cases of CBI are pending also, but the accused are still “practicing” boldly. There can be no solution to this legalised corruption unless every refund is compulsorily issued with interest on delayed refund within 3 months from the date of receipt of refund. Verification can await. And all refunds must be issued by ECS to bank accounts of more than 5 years’ standing.

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